Lebanese agriculture faces devastating losses in wake of Saudi export ban
Fruit and vegetable exports to Saudi Arabia are worth around $36 million, a lifeline for tens of thousands of farmers now slipping into poverty and unable to afford winter heating.
Beirut - Lebanese farmers were already reeling from the country’s economic collapse. The two and a half month import ban on all Lebanese agriculture imposed by Saudi Arabia could decimate whatever is left of the barely surviving industry.
Lebanon may be small compared to other countries in the Middle East, but because of its geography, climate, fertile soil and average rainfall, it has the highest percentage of agricultural land in the region, at around 65% of its total area of just under 10,500 square kilometres, although around half is non-productive. The Lebanese agricultural sector had generated nearly $2 billion in revenues in 2019, with exports largely sent to the Arab Gulf states, including 22% to Saudi Arabia, 17% to Qatar and 12% to Syria.
But following the 2019 financial collapse, the Lebanese economy has contracted by about 30% since 2017 and is expected to contract further in 2022. The Lebanese lira has lost over 90% of its value to the US dollar, while food prices have increased almost ten-fold since May 2019. Cumulative inflation stands at 603% between November 2019 and November 2021. Unemployment is estimated to be over 40%, and over half of households are below the poverty line, according to the World Bank, which reported Lebanon’s economic crisis ranks among the most severe episodes globally since the mid-nineteenth century.
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Ahmad Dirki